BP’s annual profits doubled to £23 billion after oil and gas prices increased last year

Energy giant BP has recorded its annual profits after the oil and gas prices escalated last year in the aftermath of the Russia-Ukraine war. Compared to the company’s $12.8 billion profit in 2022, BP reported record profits this year as they more than doubled to $27.7 billion or £23 billion.

It is pertinent to mention that other energy firms also reported a rise in profits such as Shell which recorded earnings of around $40 billion just last week. As per reports, these increased profits have triggered calls for energy firms to pay more tax as more and more houses battle to pay rising energy bills.

BP CEO Bernard Looney said that the UK energy company was contributing to providing the energy that the world needs and investing in transitioning to green energy. BP’s more than double profits came in the backdrop of Brent crude oil’s price reaching nearly $128 a barrel. However, the price has since then plunged to nearly $80. The spiked gas prices have also fallen from their highs. This has led energy companies to record bumper profits but also spiked energy bills impacting households and businesses.




Energy giant BP said that its UK business, accounting for 10% of its global profits, will pay $.2 billion in tax for 2022. It would include $700 million due to the Energy Profits Levy, which is a windfall tax introduced by British ministers last year. The Energy Profits Levy was introduced on the “extraordinary” profits bagged by the energy firms and the rate is now increased to 35% from 25%. The tax applies to profits made from extracting UK oil and gas.

FAQs:

1. What is BP?
   Energy giant BP p.l.c. was formerly known as The British Petroleum Company plc and BP Amoco plc.
2. Who is BP’s CEO?
   Bernard Looney